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I wasn’t planning to write this morning, but as
usual found something to RANT about.
Following
the commencement of OPERATION PM ANNIHILATION just HOURS after the Labor Day
holiday, the PAPER gold market has been put back into its box. That
“box” is quite familiar to me, as I have been watching tick for
tick for 9½ years, and see EVERYTHING the Cartel does.
As
I’ve noted numerous times, the gold market ALWAYS seems to be falling,
yet rises every year, just as the Dow ALWAYS seems to be rising, yet never
goes anywhere.
The
reason for this dichotomy, of course, is the PPT is constantly SUPPORTING the
Dow, but cannot by itself make it RISE, just as the Cartel is constantly
CAPPING gold, but cannot by itself make it FALL. The 200 DMA is a POWERFUL
long-term support level (LONG-TERM charts DO matter!),
nearly impenetrable in fact, as soaring PHYSICAL demand ENSURES all PAPER
attacks will fail. The only time the 200 DMA was penetrated in recent memory
was for a brief month at the 2008 lows, in that case because the Cartel still
had the ABILITY to create DOUBT in the hearts of even die-hard “goldbugs.”
Unfortunately for the evil ones, those days are over,
as today’s PHYSICAL Precious Metal owners KNOW the bull market is JUST
GETTING STARTED, and don’t even BLINK in the face of DEATH STAR and
other vicious attack tactics. The MACD below indicates gold to be MORE
oversold now than November 2008, only this time gold is $1,650/oz. compared
to $675/oz. then, just as silver is more oversold than in late 2008, only
then it was $8/oz and now it’s $32/oz.
Gold
is USUALLY going down, certainly on more than 50% of all trading days and, on
a net basis, in New York trading hours thanks to the PAPER Cartel. Overall,
however, it continues to rise, with most of its gains typically made in short
periods of time, such as we saw in October 2010 (before “D-DAY”),
April 2011 (before the SUNDAY NIGHT PAPER SILVER MASSACRE), and in August
2011 (before OPERATION PM ANNIHILATION). As frustrating as it is WAITING for
the next big surge, sure as day follows night it comes, taking PMs to new
highs. In this case, the “new high” for gold will be above the
key ROUND NUMBER $2,000, and for silver will be its first ALL-TIME high in 31
years, above the hallowed “Hunt Brothers” high of $50/oz..
Given
the explosive fundamentals and “black swan” potential, the next
great surge could commence any day, and I truly believe it will be by the end
of 2011, if not shortly thereafter.
In
the meantime, we will continue to tortured by
unnatural waterfall declines, underperforming mining shares, and, of course,
the typical Cartel attack patterns that are so easy to spot. This morning,
for instance, I walked into the gym to see Dow futures down a whopping 26
points, or just 7% of yesterday’s 330-point gain, while gold was down
$14, or 35% of yesterday’s $40 gain, and silver $0.60, or 54% of
yesterday’s $1.10 gain. To add to injury, here’s the lame
headline the media used to explain the dreaded 26 point Dow futures drop.
http://finance.yahoo.com/news/Stock-futures-s...1626205163.html
No
significant news had occurred overnight (not that there is ANY negative PM
news), so it was obvious the Cartel was just instituting its hard and fast
rule, “all great PM days must be followed by horrible ones.” Not
that a $1.10 silver gain is great when you’ve had several $5.00 down
days in a row, but when you’ve been tortured for six straight weeks, a
day like yesterday is certainly considered great (that’s how the Cartel
utilizes psychological warfare). Only during those brief surges, as described
above, does gold have strong back to back performances, although of course
those days, too, are typically capped at 2%.
Next
I looked at the daily gold chart, and lo and behold gold showed its typical
pattern of Asian trading. Just as it appeared to turn parabolic, a strange
force came in to knock it down, finishing off the “budding
excitement” with a DEATH STAR attack an hour later. And the time stamp
on the high trade of the day was…drumroll
please… EXACTLY 3:00 AM EST. Amazing how I could have written this same
article in 2007, or 2005, or 2003. Some things never change.
There’s
little need for today’s “horrible headlines”, as it should
be clear to all that NOTHING happened last night except yet another Cartel
PAPER attack. But now that they have me writing on my planned “off
day”…
I
MUST start with this vile story, highlighting EXACTLY what is wrong with
America, and why the OWS (“Occupy Wall Street”) movement will NOT
die. Goldman Sachs not only DOMINATES illegal HFT trading, it also DOMINATES
political contributions. And you wonder why so many Goldman executives are
running the U.S. government (the ITALIAN government as well, by the
way!)…
http://www.zerohedge.com/news/two-politica...ices-1188644055
…and
don’t forget Congress finally found a cause to unite on, ACCUSING THE
CHINESE OF CURRENCY MANIPULATION. Talk about the pot calling the kettle
black! Gee, I wonder if this will have any negative ramifications…
http://www.zerohedge.com/news/goldman-p...nipulation-bill
…and
how about Greece, the GURANTEED default-in-waiting, which somehow the world
wants to believe can be avoided. I assure you it
cannot, but if you don’t believe me, let’s take a look what the
Greek government bond market is saying…
http://www.zerohedge.com/news/greek-...hits-record-159
…and
finally, I thought all was well in Egypt after FREEDOM and DEMOCRACY was
supposedly achieved earlier this year. I guess not…
http://www.zerohedge.com/news/mil...tion-government
All
bad, all the time, and this is what I would consider
a GOOD day.
Anyhow,
the key point of this RANT is that the current period of WAITING is unlike
ANY I have seen in 9½ years, in that, for the FIRST TIME EVER,
investors en masse are using the current weakness to MASSIVELY increase their
PHYSICAL purchases. Global investors no longer FEAR the end of the PM bull,
but are starting to KNOW, as I have all along, it is just starting, and that
ANY and ALL declines are to be utilized to add to positions. This is why
physical PREMIUMS are soaring toward record levels, and delivery waiting
times, particularly for silver, stretching out dramatically.
It
won’t be long before the NEXT PM SURGE, and when it occurs, I assure
you it will not be due to positive economic, political, or social news.
PROTECT
YOURSELF, and do it NOW!
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